Category: Start up

I’m getting ever more excited by the new businesses that I’m seeing in the healthcare sector. Whilst the introduction of new drugs largely remains with established companies, there’s a proliferation of new technology and software, promoted by some really smart entrepreneurs, that will bring real benefits to all of us.

The most visible are physical devices, which have acquired a class label of MedTech. There’s already a vast number of patient-centric apps, covering everything from lifestyle improvement to self-management of medical care. And behind the scenes, there are new apps and software tools for professional use in hospitals and care homes – classed as “Digital Health” – destined to really improve patient outcomes and healthcare sector efficiency. Efficiency is really important, as ever-increasing demands on healthcare both push up costs and create issues of logistical availability.

We’re working on some great healthcare-related projects at ICC, one helping to expand international markets for a very smart UK business and another searching for the best global sector investment opportunities for a wealth fund, so I’m seeing a lot of these developments at first hand.

One thing that’s clear is how critical it is for MedTech and Digital Health app companies to plan for global dominance in their fields as early as possible. Healthcare and wellbeing are universal concerns, and these new products and service are needed in every country of the world.

Postponing or neglecting that is very risky. There’s the usual chance of finding that entrepreneurs in other markets have developed near-identical products – quite possibly having spotted the opportunity here first. Patents and copyrights aren’t enough, especially with software – the route to conquering international markets is getting there first and establishing one’s brand.

Additionally, there are often several different ways of achieving the same improvement in health outcome, and delay risks overseas markets adopting an alternative. And, if those foreign alternatives are more internationally agile, they may enter and start to dominate the domestic market. Even if the competition is not as good, that could easily destroy the local business. It’s therefore essential that entrepreneurs and investors ensure that their business plans aim for the earliest possible international expansion.

It’s sad for me to find young, gifted and enthusiastic entrepreneurs with great health care startups who aren’t thinking that way. The usual reasons are cited – it’s distracting and diversionary, we need to get established first, we don’t have the funding – but those can all be overcome.

Admittedly, initial trials and test marketing can take much longer than with other business propositions, perhaps especially where those require getting buy-in from the UK NHS. But maybe it’s quicker elsewhere.

Products and software might need adapting to other markets – but, until you study them, you won’t know, and there’s therefore the risk that, whilst what’s needed could have been achieved easily at an early stage in development, doing it later becomes difficult and costly.

So, whilst it’s easy to say that it can’t be afforded, the question is whether startups – especially those in the healthcare sectors – can afford not to start planning their international expansion from Day One. And it needn’t be either costly or disruptive. International Corporate Creations can help!

Whilst in some areas of politics, globalisation may be becoming a dirty word, in the world of MedTech and Digital Health it’s essential thinking.

Then you have all the bureaucratic and legal steps such as choosing the right business structure, the business name, logos, accountants, office and facilities, marketing strategy, etc. But how do you turn the idea into a profitable business? Here are some thoughts.

1 – Start by analysing your own problems

The easiest and most direct way of achieving that a-ha! moment is to come up with a product or service that you want to use yourself. Think about something that you need and cannot find the solution anywhere else. What is your need? And how do you fulfil it? The advantage of creating something for yourself is that you might find out there is a huge market for it as other people are looking for the same solution. You’re passionate about what you do because you’re solving your own difficulties and it works as a simple way of testing the quality of the idea!

2 – Execute your idea

How many times have you heard people saying – I’ve got this idea – but never tried it – they could have been millionaires by now – who knows? More important than having the idea is executing it. You have a problem, find of a solution, test it and see how much it is worth. It might not be successful the first time around, but do it!

3 – Make the time

“I don’t have the time” – make no excuses. Manage your time efficiently, define the priorities for that day and replace those 2 hours on the sofa in front of a TV to work on your project. As soon as you start, you’ll be sure whether this is something serious enough for a business or just something you could do as a hobby. If, after a while, you see it doesn’t work you haven’t lost anything at all – just a few hours of your life.

4 – Define your limitations

If your product is not for everyone that’s ok, as long as it works for some. Your “customer” (even if this is a friend whom your showing your business idea to) may feel insulted because you do not want to add another service or feature to your product/service – and that is ok if you truly believe in your project. Your limitations are set by answering the question: “Why you are doing this?”

5 -Mission possible

Plan your business in a way that you only commit to what you can do, working within your limitations. This doesn’t mean you’re just being safe, you’re being honest about it. You can promise you’ll provide your product/service to the best of your abilities but don’t fall into the trap of promising the best service they’ll ever get. Set the expectations into a realistic level.

6 –What do you REALLY need

If all the bureaucracy seems a lot to take in and is already scaring you, take a second thought: do you need all of that in the first stage? Maybe you can start in a shared space instead of a river view office with ridiculous service charges? Can you reply to your own emails and handle and all the workload for the first 3 months? Can you start straight away instead of in 6-months’ time? At a later stage, you might need a more complex plan but outline what is imperative to have.

“The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese proverb

Technology changes, but the Art of Business doesn’t. Methodologies come into and out of fashion, and get expressed in different ways, but the fundamentals of success are always the same. My “Top Three” were instilled in me by one of my first employers when I was in my early twenties – and since then, I’ve validated them by reverse observation – the entrepreneurs behind every small business failure that I’ve personally witnessed since then have failed on at least two of these points.

Total commitment

This doesn’t necessarily mean working 7 days every week, but it does mean at least thinking work every day. It’s essential to always be available – pick up every call, and answer every email, whether it’s day, night or weekend. The best opportunities are often unexpected and come up at crazy times. Unfortunately, there are very few entrepreneurs who are both successful and lucky enough to be able to maintain that aspirational work-life balance.

Time management

Plan every day in advance to make at least a little time for everything. If it’s quick, do it now. Never ever let a day pass without doing at least one constructive thing to generate new sales. Insist on quality but don’t aim for perfection – assign sufficient time to do each task well, but don’t keep polishing. Don’t end up skimping on the next task – it could be the one that makes your fortune.

Humility

If you’re an entrepreneur, you’ll spend a lot of your time selling. Potential customers don’t like hard sells and they particularly hate exaggerated claims. You’re human and your product or service isn’t perfect – admit it. Just aim to be the best person you can, managing the best company you can establish, selling the best product your company can make – and remember to ask everyone, especially every customer, how you could improve.

The ultimate step by step guide

Probably one of the most asked questions during the 65, 619 new company incorporations in the UK (according to the latest statistics for April 2016) was “how much?”. Well not a lot to register it… but quite a bit to set up and maintain it.

There are definitely some factors to take into account that, if overlooked, can be deadly for your business, even before you start trading.

Yes, the idea motivates you, and your will is stronger than ever, but how solid are your finances and how long can your business survive without profit? It is vital that you think through all the potential costs properly, and include a contingency plan. There are always unexpected expenses. Those, along with poor budgeting are the most common reasons for start-up failure.

Once the money is sorted and your idea is finally turning into reality, you should be able to answer these basic questions and include them in your business plan along with all projected costs.

What is your market?

Who are your competitors?

How useful is your product and how will you position it?

What is your Unique Selling Point?

Are you going solo or setting up a limited liability company?

Now, all you’ve got to do is make sure you include all these costs before you get started:

Business premises: after staff salaries, probably the biggest operating cost. Whether you use serviced offices or retail business premises, bear in mind that normally these come with agency fees and service charges. You may also have to pay a big sum upfront on your lease, as some landlords and agencies operate on a quarterly rather than monthly basis.

Professional advice: Include these services in your budget. The planning stage is one of the most important. It’s OK if you are not an expert, but find some legal and financial advisors to help you with your plan. Keep these contacts for future occasions – when you employ staff or have questions or on projected costs and profits, taxes… Then you’ll definitely need an accountant, payroll agent, lawyer or solicitor.

Business travel: when starting a new business, you’ll probably have to attend meetings outside the office. Have some budget allocated to travel, either by public transport or using your own vehicle.

Stock, tools and equipment: if you’re not operating a service this can also mean a significant upfront cost. You need to make sure that you’ve got all the material needed to carry out your work smoothly from the start.

Insurance: this should be done straight away. It’s important that you protect yourself and keep your company from any type of liability. Insurance is not that expensive but it is important to get the right type of cover. The most common (and essential) is Employer’s Liability Insurance. The certificate should be displayed in your office along with the Certificate of Incorporation or Business Name Registration. Don’t make your business vulnerable.

Marketing: as you’re starting a new business, you need to make people aware of its existence! Include events and networking on your budget as part of your awareness strategy. You can opt by traditional methods such as direct mail or spend a small amount in ensuring your website is well placed in search engine results. Invest some time and money in creating your brand: leaflets, logo, corporate brand sheet, business cards, etc. Create an identity that makes your company unforgettable!

Staffing and employment: refer to your professional advisers to have guidance on recruiting new employees, wages, tax, National Insurance or any other payroll or HR matters – again, no need to be an expert, just seek some help to save time and effort and ensure you “do it right”. Companies nowadays tend to outsource these services, and there are various packages sold depending on the size of the company.

Other expenses normally overlooked:

IT and other equipment- computers, printers, toners

Office furniture

Business stationery and office supplies

Website development

Postage

Utilities – electricity, water

Phone and internet charges

Go ahead!

Choose your business structure

Find a location

Register your company with Companies House

Register for tax and national insurance

License your business (if applicable)

Get a website

Good luck!

Any questions? We’d be happy to help – get in touch with me or any of my colleagues at ICC -International Corporate Creations.

by Joana Miranda, Admin and Finance at ICC – International Corporate Creations

The announcement of this summer’s openings in Lisbon of a Second Home Hub – a major tech workspace in London, and Impact Hub – one of the biggest entrepreneurship communities in the world made me stop for a second and ask myself: why are these two iconic start-up incubators interested in settling in Portugal? Can a country submerged in a deep financial crisis, with one of the biggest population exoduses in Europe, be the next big tech destination?

Last month, $US 22 million in Venture Capital was raised by Veniam, a Portuguese start-up that wants to enable free Wi-Fi in urban settings using vehicles. The company was created two years ago in the incubator of ctwo Portuguese universities and now has offices in Porto, Silicon Valley and Singapore.

When start-ups and VC hold hands in the same country, it is probably worth taking a closer look.

Portugal is a small, financially troubled country better known as a tourist destination than for its entrepreneurship.

Portugal has a population of 10 million people. It is part of the EU, and is a gateway to a market of 250 million people worldwide, thanks to its ties with other Portuguese speaking countries such as Brazil, Angola, Mozambique and Macau. It also has a long tradition of trade with the UK. The Eurozone crisis hit Portugal early in 2009, and a great recession led Portugal to a 3-year bail-out programme in 2011. Portugal’s GDP grew by 0.9% in 2014 and 1.5% in 2015, and the growth forecast for 2016 is 1.6%. After an extremely difficult period, the Portuguese economy is now showing signs of recovery and a buzz of excitement is attracting international attention… and investors.

Is it safe to assume that a small tech revolution is happening in Portugal? Why should you, or I, be considering opening a start-up in Portugal?

Porto, in the north of Portugal, was recently considered one of the best value destinations for start-ups. In summary, Portugal has a low technical cost base (low rent, cheap food and transportation, etc) and a developed local infrastructure, with good connections by road, air and sea. The government has introduced a number of tax breaks and incentives for those who set up their own company. Portugal has a well-educated work force with a talented young generation with a high technical skill set. Portuguese are welcoming people, and English is widely spoken in business.

Portugal is becoming synonymous with innovation and leading companies are building a new and effervescent reality. If these are not good enough arguments for you to take your laptop and move to Portugal, I will give you a few more: sun, quality of life, security, golf, Port wine and… sardines, of course!